Tax revenue from vehicle imports surge

Aug 26, 2010 11:49:15 AM - itnnews.lk

Sri Lanka’s revenue from taxes has risen sharply after import duties on vehicles were slashed.

Director-General for fiscal policy of the Ministry of Finance and Planning S.R. Attygalle said the Government earned 1,700 million rupees in July on vehicle import tax revenue alone after import taxes were slashed in June. It is an increase of around 240 percent compared to only about 500 million rupees in May, the pre-tax cut period. One of the objectives of reducing import tax was to raise tax revenue from vehicle imports.

The Finance Ministry expects tax revenue from vehicle imports would further increase this month. Mr. Attygalle explained that vehicle prices would come down further in the coming months, and their aim is to make it easier for people to acquire vehicles as economic activity revives with the end of the war.